New study reveals growth of IT sector is more than double the rate for the overall economy

Umbrella Company Employees specialising in the IT contracting sector have chosen an industry that grew at double the rate of the overall economy between 2010 and 2011, a new study jointly commissioned by The Chartered Institute for IT, e-skills UK, the trade body Intellect and the professional institute the British Computer Society (BCS) reveals.

The growth value added (GVA) of the sector now stands at £72 billion, which not only amounts to 5% of the UK total but also represents a growth rate of 5% – more than twice the 2% growth rate of the overall economy. In effect, every worker in the information economy represents £99,000 of GVA, well over twice the £47,000 whole economy average.

One reason for this high value is undoubtedly connected with the high level of educational attainment achieved by staff in the sector: almost two-thirds are educated to degree level and around 60% hold professional roles, compared to 40% and under 20% respectively for the whole workforce.

Intellect’s director general, Julian David, said that the report reveals the UK tech sector to be in “robust health.” He continued: “The UK tech sector is critical to the national economy – across all industries we employ more than 1.4 million people, representing 5% of the total UK workforce. Tech in the UK sits at the heart of all kinds of activities and advances, from education to energy and from finance to fashion. This research is a timely reminder that continued economic recovery is critically dependent on digital expertise – and that the UK tech sector is well placed to lead it.”